For release 21
May 2019
Schroder Real Estate Investment Trust
Limited
("SREIT"/ the "Company" /
"Group")
DISPOSAL OF THE BOOKER UNIT IN
ACTON
Schroder Real Estate Investment Trust, the actively managed
UK-focused REIT, announces that it has exchanged unconditional
contracts to sell a warehouse let to Booker Limited in Acton to an
institutional purchaser for £18.875 million. The disposal is
due to complete on 15 November 2019,
which provides SREIT with income during the half-year period.
The buyer has paid a non-refundable deposit of £1.89 million (10%
of the purchase price).
The property comprises a 64,614 sq ft warehouse on Allied Way
Industrial Estate in Acton let to Booker Limited until September 2026 at £700,000 per annum. The
price therefore reflects a net initial yield of 3.5%.
Based on the disposal price, the asset has generated an ungeared
total return of 14.3% per annum since acquisition in 2005, compared
with the MSCI Benchmark for the same period of 5.7% per annum.
The disposal is consistent with SREIT’s strategy to sell lower
yielding assets and to realise gains from asset management.
Since 31 December 2018, SREIT has
completed or unconditionally exchanged contracts to sell five
assets (including the Booker unit) for £68.9 million, which reflect
an average net initial yield of
3.1%.
This follows the previously announced disposal of Victory House
at a price of £36.1 million, which completed on 30 April
2019. Following completion of the Booker unit, and adopting
portfolio value as at 31 March 2019,
SREIT’s loan to value, net of cash, would be 19%.
SREIT has today also announced its final results for the
financial year to 31 March 2019.
-ENDS-
For further information:
Schroder Real Estate
Investment Management Limited:
Duncan Owen / Nick Montgomery / Frank Sanderson |
020 7658 6000 |
Northern
Trust:
Sean Walsh / James Machon |
01481 745529 |
FTI
Consulting:
Dido Laurimore / Richard Gotla |
020 3727 1000 |